Tag: Economies of Scale

For best value in buying products there are two different approaches: a) Use the forces of competition b) Use economies of scale Supermarkets like Tescos manage to combine both. The size of market it offers makes it possible for its buyers to drive hard bargains. But it would never remove competitive forces. Whether you supplyRead more

Those who believe government can reap economies of scale often quote the example of Tesco. For example, Colin Cram wrote in his Guardian piece this week in favour of shared services, “Where do we spend most of our money – at Tesco or in corner shops?”. The first problem is that retail does appear to showRead more